Employee’s of company’s are generally paid in one of four payroll cycles: Weekly, Bi-weekly (every other week for 26 payrolls per year), Semi-monthly (twice per month for 24 payrolls per year) or Monthly.
To save money and make your company more efficient you should consider extending your payroll to the least frequent cycle which you are allowed under state law.
Less frequent payroll leads to:
- less direct charges associated with processing payroll
- particularly if you are NOT processing paperless or “green” and therefore have been paying courier charges to deliver your checks/stubs/reports savings could be as much as $600+/year
- less time spent interacting with your payroll provider
- fewer journal entries
- lesser need to interact with your vendors reporting your payroll data, and
- less disruption to employee’s to report hours.
Each state has different requirements for companies with hourly employees. For instance, here in Massachusetts, a company with hourly employee’s may pay no less frequently than bi-weekly. Whereas our clients in Rhode Island, Connecticut or New Hampshire who have hourly employees are required to pay them on a weekly basis, unless they petition for a waiver and in RI post a bond.
Here is a chart outlining each states rules for payroll paydays.
Contact me NOW to discuss your payroll needs and processes and lets see if we can make you more efficient and/or economic!!
Mitchell Zucker
774-218-9486 mobile
mzucker@payprosinc.com
